“While ‘Made in China’ is a common sight on manufactured goods, China also exports deflation. Chinese manufacturing goods supply is growing much faster than Western and Chinese demand for manufactured goods. This means a glut of supply which increasingly pushes down manufactured goods prices.

“According to World Trade Organisation data, China accounts for 17.1% of the total increase in world merchandise export (excluding the Eurozone) from 2002-2012, hugely disproportionate to its size. This makes China a global price setter. In the past decade, the percentage of Chinese imports into the Eurozone has doubled, meaning that China is increasingly exporting deflation into the Eurozone.